US investment manager BlackRock is to build 35,000 m2 of speculative industrial sites in northeast London and Essex.
US investment manager BlackRock is to build 35,000 m2 of speculative industrial sites in northeast London and Essex.
The financial backing comes from BlackRock’s UK Property Fund, with development planned for two main sites: Tower Thurrock in the county of Essex and Highams Park in northeast London. The venture marks a new departure for a company better known for buying distressed assets.
Tower Thurrock will see three distribution and warehouse units built with developer Bericote, totalling 26,000 m2 and ready for occupation later this year.
‘Whilst speculative development may be considered new ground for BlackRock, we are convinced that the acute lack of supply in the area will drive leasing of this scheme, which is designed specifically to satisfy prevailing occupier demand,’ said BlackRock portfolio manager Paul Tebbit.
Bericote’s Alan Stainforth added: ‘Tower Thurrock presents the perfect opportunity to deliver product to the market in an area with very little choice for occupiers.’
The Highams Park development in northeast London is at Circular Point, and has been bought from Wrenbridge and Palmer Capital, who will continue as developers. The site covers 9,000 m2 and will contain 10 units.
‘Circular Point provides the fund with a rare opportunity to access grade A industrial investment stock in Greater London,’ said Tibbet. ‘Northeast London supply is limited and demand is growing as the UK economic recovery gathers momentum.’
